Waltham association applauds passage of state flood insurance bill

The Waltham-based Massachusetts Association of Realtors (MAR) said it applauds the work done by Gov. Deval Patrick, Attorney General Martha Coakley and House Speaker Robert DeLeo to address the impacts of the changes to the National Flood Insurance Program at the state level with the passage of H3783, An Act Relative to Flood Insurance.

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Posted Jul. 27, 2014 at 12:01 AM

Posted Jul. 27, 2014 at 12:01 AM

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The Waltham-based Massachusetts Association of Realtors (MAR) said it applauds the work done by Gov. Deval Patrick, Attorney General Martha Coakley and House Speaker Robert DeLeo to address the impacts of the changes to the National Flood Insurance Program at the state level with the passage of H3783, An Act Relative to Flood Insurance.

“Due to the older and coastal housing stock in Massachusetts, we have been working tirelessly with the National Association of Realtors on a federal level to seek relief for Bay State homeowners after major changes to the National Flood Insurance Program,” said MAR 2014 President Peter Ruffini, regional vice president for Jack Conway Realtors in Norwell. “We greatly appreciate that Governor Patrick, Attorney General Coakley and Speaker DeLeo not only recognized this as a serious issue, but also crafted legislation that will help some of those homeowners impacted to prevent default or foreclosure.”

This new law will provide homeowners with the option of purchasing flood insurance in an amount that would only cover the outstanding amount of a mortgage or equity loan, according to the association. Previously, these homeowners would be required to purchase full replacement value regardless of the value of the mortgage owed.

As a result, insurance premiums could be so high that some homeowners could no longer afford to live in their homes. This new law will be beneficial for some to help prevent default or foreclosure, but it is still recommended that homeowners carry enough insurance to protect themselves in the event that they lose their home to a flood, according to the association.

“We will continue to work with our national association and other coalition partners to address longer term issues involving FEMA mapping and housing affordability,” Ruffini said.